It’s pretty common for an individual to fall into bad credit if the person does not budget properly. People usually develop bad credit after failing to make payments on time which also makes it harder for traditional credit providers to trust such borrowers. According to the directives set up by various credit bureaus, borrowers with a credit score of below 579 are considered bad credit borrowers.
If you find yourself falling in this category and are unemployed, you will find it increasingly difficult to access loans from traditional sources. Luckily there are payday loans for the unemployed available for such individuals. With the popularity at its peak for the last couple of years, there is a lot of intrigue behind how payday loans work and how one can apply for them.
#1 Payday Loan For Unemployed – Viva Payday Loans
Best Payday Loans For Unemployed – Quick Pick
Finding payday loan providers is pretty simple in the age of the internet, as a simple search query such as “Payday loans that accept unemployment benefits near me” will yield a multitude of results. However, not all of them are legit nor do they offer the best rates available. To save you the hassle of hours of searching on the net, we’ve compiled a list of 5 of the best payday loan providers for guaranteed loans below.
- Viva Payday Loans – Best for people with unemployment benefits
- Credit Clock – Best for no credit checks
- Money Lender Squad – Best for lower loan amounts
- Very Merry Loans – Best for weekend funding
- Heart Paydays – Best for same day decisions
The choice is up to you, but you should conduct your own research before applying. Checking out the terms and conditions and checking whether there isn’t any hidden fees is the first step to ensure you’re not falling into a debt cycle.
How To Get Payday Loans For Unemployed – Quick 4-step guide
The application process for payday loans for unemployed is more or less the same across the industry, characterized by a quick application process and almost instant loan approvals.
While there are nuances to each broker or lender, the application process can be described in 4 quick steps below.
- Visit Viva Payday Loans – Visit a reputable payday loan provider’s website, such as one from the list we provided above. Almost all of these websites have a simple layout that will allow you to easily read the terms and conditions of the website. Click on apply now to proceed to the application form.
- Complete the application – The application forms of most brokers tend to be very simple as it requires some basic information about you and how much amount you want as loan. Details regarding the loan tenure, i.e. if you want a 1-month loan as opposed to a 6-month loan, will also be included. Input your preferences to proceed and submit the application form.
- Getting the decision – Depending on the broker or lender you’ve chosen, the application gets processed within 2 minutes to a few hours. You will also get to know whether you qualify for a loan within a few minutes as well. Depending on this, you will be connected to appropriate lenders who will give you loans with your preferred terms.
- Getting the loan – Once all required checks have been completed, you will be notified that the lender has sent the requested loan amount directly to your bank account. Most brokers and lenders provide same-day approval although the deposit times depend on the applicant’s bank.
What Are Payday Loans For Unemployed?
Payday loans are a relatively new type of loan that is usually short-term and small in nature (within several thousand dollars). Payday loans for the unemployed offer financially struggling individuals with some emergency funds. It may be known by some other names as well, such as payday advance loan, cash advance, short-term loan, fast cash or fast loan, bad credit loan and deferred deposit transaction.
Payday loans focus mainly on people with poor credit scores and credit histories who have an urgent need for funds. These individuals have expired their options when it comes to accessing credit. Lenders in this market charge high interest rates for giving out such un-secured loans. While critics point out that payday loans unfairly target low-income demographics and practice predatory behaviour, advocates of reliable payday loans say that it grants financial aid to people who need them the most.
Best Payday Loans For Unemployed – Fully Reviewed
We will now dive right into the above-mentioned payday loan providers for you to make better-informed decisions.
Viva Payday Loans
Viva Payday Loans is known as one of the best bad credit loan providers where you can apply for loans ranging from $200 to $5000. It usually provides a 2 to 24-month repayment option depending on your preferences. It works with lenders such as Rise Credit and LendUp among others.
Vivapaydayloans.com is a broker which connects you to different lenders. They do not conduct any credit checks themselves. The application process is pretty simple and straightforward and requires your email, your name details and information on whether or not you have a bank account or not.
Lenders under Viva Payday Loans may require further information from you such as a proof of address, proof of income and bank statements. You will receive the loan agreement once the lender verifies all your information, usually within 24 hours although some can be granted within 2 hours.
- Viva Payday Loans provides same-day pay-outs
- It has a 5-minute application process and a 2-minute approval process.
- It is not available in all US states.
Credit Clock is a short-term loans broker that offers payday, bad credit and personal loans between $200 to $5000. It is known for a quick application process which comes in handy if you have little time to make payments.
Credit Clock offers APRs between 5.99% to 35.99% and works with lenders such as OppLoans and GreenDay.
At Credit Clock, you need to provide proof of income of a minimum of $1000 per month. Eligibility depends on whether you are 18 years old and can provide proof of address and a valid phone number.
- It welcomes bad credit borrowers in large numbers.
- Guaranteed pay-out time of 24 hours.
- You must be able to produce an income statement or proof which means unemployed persons cannot apply.
Very Merry Loans
Very Merry Loans is an online loans portal that works with several US-based lenders. It advertises a 60-minute pay-out deal which is perfect for people in a cash crunch. The layout of the website is simple as it presents a panel of loan providers to choose from easily.
Loan amounts can range from $200 to $5000 and can choose loan terms within seven to thirty-one days. Some lenders can offer longer loan terms if you are lucky enough. Interest rates can vary from 6% to 36%.
Very Merry Loans works with lenders such as CashNet USA and fees are specific to the state of residence. For instance, a $5 verification fee is charged with added fees of $10 per $100 borrowed in Florida.
- Extended repayment periods are provided by the lenders.
- It welcomes bad credit and unemployed borrowers.
- It charges high interest on 30 day loans.
If you want lower interest rates in the industry, go to Heart Paydays. This broker works with a wide range of lenders and provides no-obligation quotes within minutes. Loan amounts can range from as little as $100 to $5000.
If you are unemployed, having cash problems, live on government benefits and have a bad credit score, payday loans that accept unemployment benefits online are your only option. Heart Paydays can connect you to a reliable broker that can offer you terms that you can meet.
Heartpaydays.com is known for its reasonable APR rates compare to some of the others on this list. APRs can depend on the lender as well as the loan tenure. Heartaydays.com works with lenders such as ACE Cash and LendUp.
- You do not have to go through any phone call or paperwork.
- It guarantees 24-day pay-outs.
- Certain loan offers carry very high fees.
Money Lender Squad
Money Lender Squad presents loans with low APR with no guarantors required. You can get loans with no credit checks spanning 24 months, or quick loans lasting just 60 days. Interest rates from lenders, in this case, range from 36% to 400%.
To apply for a loan, simply complete their online form by providing them with certain identifiable information. As the broker focuses primarily on low-income individuals, there are no hard credit checks.
At Money Lender Squad, you may receive loans from lenders such as Rise Credit and OppLoans.
- You can access extended loan terms with Money Lender Squad.
- Its application process is one of the quickest on this list.
- Interest rates depend on your credit score.
Features of Payday Loans For Unemployed People
Compared to normal loans, payday loans for the unemployed have some pronounced differences.
One of the reasons why consumers are attracted to payday loans is their relative convenience. This is very different than having a time-consuming experience in banks with all the paperwork needed, only to be rejected eventually. Many brokers almost guarantee that their clients will be connected to a lender, no matter what their financial status is.
Most lenders try to pre approve loans within the same day as their applicants are normally in a bit of a rush. This differentiates them from banks which can take several days to perform credit checks and accept the loan application. On the other hand, you can get a payday loan within hours of applying.
Compared to traditional loans, the APR for these payday loans is higher. The lenders take in extra risk when they provide unsecured loans to such individuals. As a result, APR rates can sometimes be as high as 50% in some cases.
You will find online lenders easily on the internet as a quick search will yield thousands of results. While there are brokers that connect to several lenders, others are direct lenders where there are no middlemen involved. You can go ahead and apply with these lenders one by one. But it’s a time-consuming process, something which individuals with bad credit can’t afford.
Advantages and Disadvantages of Payday Loans That Accept Unemployment Benefits
Like every other form of loan, payday loans also have their own sets of advantages and disadvantages. You should carefully go through the following points to be sure that payday loans are the right option for you.
The most enticing thing about payday loans which are not offered anywhere else is their easy accessibility. Many cash lenders promise their clients access to cash within 24 hours with an immediate lending decision. Some lenders even offer this service on a 24/7 basis and can be applied from the comfort of one’s home. Most applications take less than a few minutes to complete.
Lenders make these loans, especially for credit-challenged individuals. This means that they have far fewer requirements compared to traditional lenders who usually require documents such as Social Security number, photo ID, proof of income, and a credit check. Payday loans can be applied without SSI, and generally have basic requirements such as citizenship and 18 years of age proof.
Part of what makes these payday loans enticing is that it doesn’t judge one based on credit score. This means that there is no hard credit inquiry, something which can harm your credit score, as these lenders do not pull your credit. This allows many individuals to get access to credit, who would normally be disqualified by banks and other traditional institutions.
Payday loans are not secured by part of your property and do not need any collateral like in the case of a car title loan, traditional auto loan, or mortgage. The lender cannot seize your property if you fail to pay the loan amount on time. While not secured, lenders for payday loans still have access to your bank account.
Payday loans can have higher APR rates (as high as 400%) depending on the state of your residence. For comparison, credit cards charge a 12% to 30% interest rate while personal loans charge about 4% to 36% on average. They are also sometimes harder to pay back as the lender does not verify the applicant’s ability to pay back. You should take into consideration your debt-to-income ratio when applying for a payday loan.
- Doesn’t help to build credit
Most payday loan providers and lenders do not report your activity to any of the major three credit bureaus – Experian, Equifax or TransUnion. As a result, your on-time payments will have no effect on building credit.
If you fail to repay a payday loan on time, they can drag you to court and get a judgment against you. You can face harsh legal problems, requiring you to face wage garnishment and even imprisonment. Some lenders may even allocate this task to professional debt collectors who can threaten or sue you to get the money back. These terms and conditions are usually provided beforehand.
Payday loans are generally made so that most credit-challenged individuals can access them. This means the entire credit checking aspect of these loans is eliminated. However, you do have to meet some basic requirements as mentioned below.
- You have to be a minimum of 18 years of age to apply for a payday loan.
- You must carry valid US permanent citizenship documents with you.
- You must be a US bank account holder
- In some cases, you might have to show proof of income for at least 90 days.
- Some lenders may ask you for your social security number.
The application process stays more or less the same with every payday lender or broker, which is usually quick and seamless. To explain this clearer, let’s take the example of Viva Payday loans.
Go to Viva Paydays official website
Go to Viva Payday Loans which will direct you to a simple and easy-to-understand interface. Click on “apply now” to begin the process from the top right corner of the screen.
Completing the form
You will encounter a simple screen where you will have input some basic information regarding the loan you’re requesting. The application will request your name, email address, personal details, employment and income information, banking details, and a list of monthly expenditures. Approval takes place within a couple of minutes after which you will be notified by the appropriate lender directly.
Waiting for approval
The entire process takes place within a few minutes, after which, the lender provides you with a loan agreement to review and sign. Read the terms and conditions carefully before proceeding at this stage.
Receiving the amount
Once you sign the loan agreement and submit it, you will receive the loan amount in the stipulated bank account. The time taken for this process may vary as it depends on the applicant’s banking system as well. Usually, payday loans are granted within the same day of approval.
Request Your Funds at our #1 Provider – Viva Payday Loans
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